|| OFFICIAL |
University Employees (Administrators, Faculty and Staff)
Additional and Supplemental Pay
June 15, 2006
The Department of Human Resources (HR) is responsible for approving all additional and supplemental pay requests. The department and unit must approve all requests in writing prior to submitting to HR for final approval. The department or unit head, dean or vice president shall not assign additional responsibilities to employees prior to receiving HR’s approval and confirmation of the amount of supplemental pay, X-pay or X-ben. The requesting department or unit must have adequate, available and active position funds in the appropriate program during the full payment period of the additional payment.
Supplemental pay, X-pay or X-ben shall not be used to pay a bonus or a performance-based form of compensation unless otherwise specified in an employment contract or offer letter. Supplemental pay, X-pay or X-ben shall not be used to pay an employee expense or disbursement that is processed through the Controller’s Office.
X-pays or X-bens that exceed six months require an extension request of no more than six months. Exceptions to the one-year limitation on X-pays and X-bens may be made for Part Time Lecturers (PTLs) and other positions that cannot readily be replaced. A request for reclassification or in-range adjustment should be completed if the additional duties are to continue indefinitely and have been performed for a time-period greater than six months. Other exceptions include practice plans and allowances that must be renewed annually.
Non-exempt staff are not eligible to receive supplemental pay, X-pay or X-ben.
No department or unit’s supplemental pay, X-pay or X-ben policy can be in conflict with this policy.
REASON FOR POLICY
To establish when additional and supplemental pay is appropriate.
Institutional Base Salary
The dean or vice president of the employee’s home department and the dean or vice president of the initiating unit must approve all requests for supplemental pays, X-pays and X-bens. The dean or vice president may delegate this responsibility to an associate dean or assistant/associate vice president; however, the dean or vice president will be held responsible for any additional pay approval. At the Health Sciences Center (HSC), the Executive Vice President for Health Affairs (EVPHA), in addition to the dean, must approve all additional compensation. The President must approve any additional compensation for the Provost. The Provost, or in the case of HSC deans, the EVPHA, will approve supplemental pays or X-pays and X-bens for any dean (including vice deans, associate deans, and assistant deans) or vice president, and will appoint a designee to approve requests for departments within the Office of the Provost.
X-pays and X-bens paid from a Federally Sponsored Program (including federal flow-through funding) must be approved by the Office of Sponsored Programs Administration.
Institutional Base Salary (IBS)
IBS is defined as the annual compensation paid by the university for an individual's appointment (e.g., 9, 10, 12 month Faculty appointment), whether that individual's time is spent on research, instruction, administration, or other activities. The IBS does not include bonuses, one-time payments, or incentive pay.
Definitions for Administrators and Faculty:
- Institutional Base Salary (IBS) includes base salary and supplemental pay, but excludes X-pay and/or X-ben.
- Supplemental pay is pay that is in addition to base salary and is included in calculations for retirement or other benefits. Examples of when supplemental pay should be used include, but are not limited to, on-going administrative responsibilities, recognition as a university scholar, distinguished university scholar or endowed chair, and other extraordinary compensation arrangements where the supplemental pay can be reduced or eliminated as appropriate.
- X-pay is pay for the assumption of teaching overload and/or additional duties on a time-limited, short-term basis and is excluded in calculations for retirement or other benefits that are a percentage of salary.
- X-ben (to faculty) is pay for the assumption of research (e.g., summer research) that is performed outside of an individual’s academic appointment, and/or an interim assignment on a time-limited, short-term basis and is included in calculations for retirement and other benefits that are a percentage of salary.
- X-ben (for administrators) is pay for the assumption of an interim assignment and is included in calculations for retirement and other benefits that are a percentage of salary. Interim administrator assignments shall be for a limited duration, not to exceed four years, without a search to fill the position on a regular basis.
Definitions for Professional and Administrative (Exempt) Staff:
- Institutional Base Salary is regular salary plus supplemental pay, but excludes X-pay and/or X-ben.
- Supplemental pay is pay that is in addition to their regular salary and is included in calculations for retirement or other benefits. If the intent is for the position to perform additional duties for more than 12 months but within a project term with an end date, then supplemental pay should be used.
- X-pay is pay for the assumption of teaching and/or additional duties of a higher level on a time-limited, short-term basis, usually 12 months or less. X-pay is excluded in calculations for retirement or other benefits that are a percentage of salary.
- X-ben is pay for the assumption of research and/or an interim assignment (beyond or in addition to standard job duties as defined in the Job Description Form) on a time-limited, short-term basis and is included in calculations for retirement and other benefits that are a percentage of salary.
An externally funded activity that is governed by specific terms and conditions as outlined in a legal agreement or notice of award. Sponsored programs must be separately budgeted and accounted for subject to the terms of the sponsoring organization. Sponsored programs may include grants, contracts (including fixed price agreements), and cooperative agreements for research, training, and other public service activities. A sponsored program encompasses both the main sponsored account(s) and associated cost share and/or program income account(s).
The department head, dean or vice president is responsible for monitoring all supplemental pays, X-pays and X-bens for their home department.
This policy replaces BFP 006 Supplemental Pay and X-Pays policy (effective December 3, 1999) and updates PER 3.10 Additional and Supplemental Compensation policy (effective June 15, 2006).
This policy was approved by the Risk and Compliance Oversight Council (RCOC) and is effective November 30, 2017.
Revision Date(s): October 30, 2017
Reviewed Date(s): March 8, 2016, October 30, 2017
Associate Vice President for Human Resources
RESPONSIBLE UNIVERSITY DEPARTMENT/DIVISION
The University Policy and Procedure Library is updated regularly. In order to ensure a printed copy of this document is current, please access it online at http://louisville.edu/policies.